Radian

Fitch: MGIC Lands on Rating Watch Negative 

As details of a MGIC/Radian merger continue to emerge, Fitch Ratings said yesterday that it had placed the ‘AA+’ insurer financial strength (IFS) ratings of Mortgage Guaranty Insurance Corporation (MGIC) and the ‘A+’ senior debt rating of MGIC Investment Corporation (MGIC Investment) on Rating Watch Negative as a result of the announced merger plan between MGIC Investment and The Radian Group Inc. While stressing the positive potential outcome of a merger, Fitch said its ratings action reflected an increase MGIC’s risk profile relative to historical norms.